Lana Purchased for $1,410 a $2,000 Bond When It Was

question 110

Multiple Choice

Lana purchased for $1,410 a $2,000 bond when it was issued two years ago. Lana amortized $200 of the original issue discount and then sold the bond for $1,800. Which of the following statements is correct?

• A) Lana has $10 of long-term capital loss.
• B) Lana has $190 of long-term capital gain.
• C) Lana has no capital gain or loss.
• D) Lana has $190 of long-term capital loss.
• E) None of the above.

Master the adjustment processes for unrealized profits and intragroup transactions in NCI calculations.

Grasp the significance of fair value method and proportionate interest method in NCI measurement.

Explore the disclosure requirements for NCI in consolidated financial statements.

Examine how NCI interacts with profits, retained earnings, and interstate group activities.

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Definitions:

Psychological Pricing

Encouraging purchases based on emotional rather than rational responses to the price.

Seasonal Discount Pricing

A pricing strategy where companies offer discounts on their products or services during certain times of the year.

Penetration Pricing

A marketing strategy where the price of a product is set lower than the competitors' prices in order to quickly gain market share or attract customers.